Lulo, a Solana-based Yield Aggregator, Saw Its TVL Double to $38.7M Since August

The yield aggregator launched at the beginning of the year and has continued to grow even during DeFi market downturns.

Solana-based yield aggregator Lulo saw its total value locked (TVL) double since the beginning of August, reaching a record $38.7 million.

Launched earlier this year, the yield aggregator has been outperforming competitors despite the bear market in DeFi.

In the last month alone, Lulo’s TVL surged by over 120%, making it the best performer among yield aggregators, a subsector led by Ether.fi Liquid, Beefy, and Yearn Finance. The rapid increase in TVL also made Lulo the eighth-largest yield aggregator in DeFi.

Deposited Solana-based tokens earn generous interest rates on Lulo, which finds the best rates by connecting to multiple lending dapps on the Solana chain.

Currently, the platform supports nine tokens, but the recent surge in TVL was largely driven by PayPal’s stablecoin pegged to the US dollar, PYUSD. Deposits of PYUSD on the platform surged from zero to $20 million in a month, recently surpassing USDC with a record TVL of over $13 million.

Interest in PYUSD surged after PayPal added Solana support at the end of May. The stablecoin was first launched in 2023 on Ethereum as an ERC-20 token. In only three months, the market cap of Solana-based PYUSD surged from zero to over $650 million, surpassing the ERC-20 PYSUD and helping the stablecoin break above the $1 billion mark for the first time on record.

The surge in PYUSD’s market cap is likely due to the generous incentives on the Solana ecosystem, as major DeFi platforms like Kamino, Drift, and Marginfi introduced rewards for PYUSD deposits. Lulo supports all of these major platforms.

On August 27, Lulo experienced record inflows, with daily token deposits exceeding $2.8 million.

PYUSD accounted for over half of total inflows with a record $1.7 million.